US banking groups urge a 12-month operating record before crypto and fintech firms gain direct Fed payment access, citing oversight and systemic risk concerns.
US banking associations have jointly opposed immediate direct payment system access for cryptocurrency and fintech firms, recommending a 12-month operational track record before eligibility. The debate centers on 'skinny accounts,' which would allow stablecoin issuers and payment companies to bypass traditional banks. Regulators are weighing potential systemic risk protections, with banking groups warning of oversight gaps and stability threats, while non-bank innovators argue such access would improve efficiency and competition.